Recapitalization will be necessary for EU Banks
Recapitalization (a euphemism for bailout) will be necessary for EU banks if they have to take major losses on their Greek loans. Dexia, the largest bank in Belgium, folded almost overnight recently and its exposure to Greek debt was only a little over 1% .
Imagine what would happen to banks with larger exposures? EU banks also hold substantial amounts of ...Read On →
German Flash Crash Shows Vulnerability of the Market
By: Daryl Montgomery
Between 3:30 and 4:00PM Central European time the DAX, the major German market index, lost around 250 points. This is roughly equivalent to a 500 point drop in the Dow Industrials in half an hour. Prior to that, the DAX had been slowly drifting lower. Then suddenly it dropped like a rock.
The pundits were quick to come up with possible explanations. A fat finger error was cited as a possibility (this is ...
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